[BUG] Terminal interaction is broken in desktop Ubuntu - cannot use

Environment

• Platform (select one):
• [x] Anthropic API
• [ ] AWS Bedrock
• [ ] Google Vertex AI
• [x] Other: N/A, don't understand the question
• Claude CLI version: "0.2.35 (Claude Code)"
• Operating System: Ubuntu 22.04 (via PopOS!)
• Terminal: gnome-terminal (nothing special, tried both within and without tmux, same problem)

Bug Description

When I start Claude Code just typing "claude", there are two problems

1. the terminal size is somehow not recognized and I get a garbled rendering.Moving the cursor up and down partially fixes it though (the top part still retains garbage).

Initially it's rendered with the wrong width though.

1. then it's asking me to "Choose the text style that looks best with your terminal:" with a menu.

Pressing enter does nothing. I tried other keys. I'm unable to get past this stage.

Steps to Reproduce

Type "claude" on an Ubuntu 22.04 system, in an empty directory, or in one with some code.

Expected Behavior

I'd expect terminal size & rendering to work in the initial window.
More importantly I'd expect that pressing Enter would store the setting somewhere and that I can start using the tool.

Actual Behavior

See above, I'm unable to get past the initial screen.

Additional Context